Business

The tax season is in full swing.So is tax fraud

The tax season is in full swing — and that means fraudsters are wandering around.

Tax fraud usually increases at the beginning of the year when taxpayers begin filing their tax returns with the IRS. (Tax season Starts February 12.. ) Also, like Covid’s pandemic, it burns during times of crisis. according to To the federal agency.

Scammers can be more active this year compared to past tax filing periods. Late start of the season, The expert said.

“This is like the perfect storm we’re dealing with right now,” said Howard Silverstone, a court accountant and a member of the American Institute of Certified Public Accountants’ Rogue Task Force.

Personal Finance Details:
What Trump’s tax returns may reveal following the Supreme Court’s ruling
A minimum wage of $ 15 could boost social security benefits by $ 5,000 a year
Some student loan borrowers may find it easier to get a PPP loan

Many scams are usually Theft of personal information, According to tax experts. In such cases, criminals may steal personal information, file fake tax returns, and receive refunds.

Taxpayers may also unknowingly provide personal data to criminals who falsely claim to be useful in collecting stimulus checks. according to To the IRS.Congress aims to pass a $ 1.9 trillion Covid bailout bill, including: $ 1,400 Stimulation Check By mid-March.

According to the IRS, “thousands of people have lost millions of dollars and their personal information in tax fraud.”

More than 89,000 Americans filed a complaint with the Federal Trade Commission last year reporting tax evasion related to the theft of personal information. according to To consumer institutions. Personal information theft was the most reported type of fraud in 2020. FTC Said..

Theft of personal information

Criminals often contact by phone or email in an attempt to strip off unsuspecting victims.

For example, in an IRS scammer scam, a scammer may pretend to be an IRS agent and threaten the caller to divulge sensitive information. Phishing scams are aimed at retrieving data such as account information and passwords via fake websites, texts, and emails.

However, the IRS will not start Contact taxpayers via email, text message, or social media channel to request personal or financial information. The agency also does not call for immediate payment — authorities usually mail an invoice to the taxpayer who should pay the tax first.

One surefire way to reduce the chance of fraud is to file your tax return as soon as possible.

“It’s the tax season,” Silverstone said. “Don’t procrastinate.

“Filing a tax return limits the chances of others stealing your identity and doing it.”

What should the victim do?

Depending on whether the taxpayer has reported fraud, there are various steps that a victim of tax-related personal information theft should take (for example, if the electronic filing is rejected for the following reasons): Duplicate filing) Or the IRS will flag your suspicious tax return with your name. according to To the agency.

In the latter case, the IRS will mail a notice or letter (Letter 4883C or 6330C) Please verify your identity. Call the toll-free number provided and IRS Taxpayer Support Center..

If you wish to report an incident, please submit a paper tax return. Complete the personal information theft affidavit (Form 14039) And attach it behind your paper return. The IRS may open a case and assign it to a personal information theft expert.

According to the IRS, taxpayers will eventually be notified that the case has been resolved, but this may take some time. It usually takes less than 120 days, but in complex cases it can take at least 180 days.

Some victims will be placed in Identity protection PIN program Get a new 6-digit PIN every year.

Consumers also need to confirm with them State tax office For additional steps at the state level.

You should also consider freezing credit with credit bureaus (Equifax, Experian, TransUnion, etc.). These can be lifted permanently or temporarily at a later time.

The tax season is in full swing.So is tax fraud

Source link The tax season is in full swing.So is tax fraud

Back to top button